LatAm growth potential makes it an exciting place to operate
Insurance growth is likely to outpace GDP, but insurers must attempt to close the protection gap, says Kaspar Mueller of Swiss Re.
It’s an exciting time to be involved in the Latin American insurance markets, with growth forecast to outpace gross domestic product (GDP) annually over the next five years. But the insurance industry must also work harder to close a growing protection gap.
That is according to Kaspar Mueller, president, reinsurance, Latin America, at Swiss Re, who told FIDES Today that growing risk awareness and financial literacy will help drive growth. But there is also a lot of work to do.
“Our Swiss Re Institute forecasts total premiums for the region to grow above GDP annually over the next five years on the back of increased risk awareness and the need to close large insurance protection gaps,” Mueller says. “That said, we still have a long way to go, including working across the industry to address financial literacy.”
A sneak preview: more exclusive content and interviews inside
A sneak preview: more exclusive content and interviews inside
Tipped for growth: Brazil’s insurance markets
The size of Brazil’s insurance sector in relation to the wider economy and an action plan by insurance bodies mean robust growth is likely.
As the Inter-American Federation of Insurance Companies (FIDES) lands in Rio de Janeiro for its annual event, FIDES Today examines the country’s insurance markets.
As well as being the largest economy in Latin America, Brazil also has the largest insurance markets. In 2022, Brazil was the 17th largest insurance market globally—and it accounted for 41% of Latin America’s insurance revenue.